RE/MAX comments on repo rate

As expected the interest rate remains on its current path a while longer, says Adrian Goslett, CEO of RE/MAX of Southern Africa.

There is no surprise as Reserve Bank Governor, Gill Marcus, announced at the second Monetary Policy Committee meeting of 2012, that the prime interest rate will remain steady at 9%. So far the rate has remained unchanged since November 2010 in the hopes that the low and steady rate would assist in stimulating the economy. This, coupled with a more relaxed approach to leading criteria by the major banks, has done just that - particularly in the property sector.

Carrying the positive momentum into the first few months of 2012, the property market has continued to see a marked improvement with many more buyers able to show affordability and enter the market, many for the first time.  Bond origination companies have reported as much as 63% growth in the volume of bond transactions processed during February 2012, compared with the same period during 2011. Also for the first time, reports have shown that January was a better month than December, which is good news for the South African property sector and points to the fact that the market is moving in the right direction – upwards.

With RE/MAX Southern Africa’s overall sales figures showing a 30% growth in 2011 from the previous year, the positive start in 2012 is a good indication that the property market is continuing to improve and will grow from strength to strength in the future.

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